1 Although auditing standards do not require auditors to provide a guarantee, the auditors may still be held accountable for their services in certain circumstances. For example, PricewaterhouseCoopers (PWC), the global auditor was sued for USD5.5 billion over its failure to spot massive fraud in the failed Colonial Bank, whose accounts it had audited. Legal proceedings against PWC were brought by trustee of Taylor, Bean \& Whitaker Mortgage, a subsidiary for Colonial Bank. PWC claims that sophisticated frauds are difficult to detect and audits are no guarantee of exposure (Forbes, August 2016). Despite that, legal suits against auditors are becoming more common especially during economic downturn. Required: a) In the context of auditors' liability, explain the following terms: 1.Privity of contract 2.Ordinary negligence 3.Professional indemnity insurance 4.Duty of care b)Differentiate the auditors' liability under Common Law and Statutory Law. (URGENT)